Smart Automation Grant

SAG is matching grant for services companies to automate their business processes and move towards digitalisation.

The matching grant will be used solely for the purpose to kick start the implementation of project by adopting technology to automate the business operation.

This matching grant is intended to assist services companies embarking on automation to achieve one of these outcomes:

• Increase in revenue
• Savings in business cost
• Reduction of process time cycle
• Reduce man hours
• Create new sources of growth

The Applicant must be a company with the registered business activities comprising primarily traditional or non-technology activities from the service sector.

The companies from the service sector include Retail, Wholesale, Food and Beverages, Tourism, Logistics, Transportation, Education, Healthcare, Real Estate, Professional Services and Financial Services. The list of services sector will be regularly updated..

To be eligible for SAG, the companies must:

• Incorporated in Malaysia under the Companies Act 1965 or the Companies Act 2016.
• Has an issued and paid up capital of at least RM50,000
• Has a minimum of 51% equity held by Malaysian(s)
• Not be the subject of a liquidation / winding up order
• Has no going concern issue and/or not dormant and
• Has entered into a written contract or a committed arrangement technology partner for the development and implementation of the project
• If previously has received any MDEC/government grant, the applicant must demonstrate the completion and success of the funded project/s

The eligible expenses are the approved project costs that are critical to the project success.

Expenses include:

• Cost of IT Hardware or IT equipment
• Cost of Software associated
• License fee
• Process redesign
• Testing and certification costs associated with the development of the project.
• Training costs associated to the project

Non-eligible expenses:

• Salary
• Outsourcing outside the country
• Calibration (deemed as part of maintenance)
• Any form of taxes
• Expenses in obtaining certification & accreditation
• Maintenance of plant / equipment
• General purpose computers and peripherals
• Mobile phones
• Tablets, laptops and personal computer
• Camera
• Furniture or any office interior materials.
• Travelling expenses
• Coaching and mentoring
• Utilities
• Office rental
• Audit fee
• Secretarial fee

The amount of matching grant which will be awarded to each applicant for up to fifty percent (50%) of the total project cost or subjected to a ceiling limit up to RM200,000 which ever is lower.

The matching grant will be reimbursed based on achievement of the agreed milestone deliverables, which will be limited to 2 times payments as follows;

1st Payment -Implementation Costs

• 50 % of the approved grant amount for Project Milestone One (1) deliverable(s);

2nd /Final Payment – Remaining Costs

• 50% of the approved grant amount for Project Milestone Two (2) deliverable(s)/Final deliverable(s);

Project implementation period is up to one (1) month and post monitoring to achieve project outcome is up to three (3) months. Total 4 months duration.

The SAG recipient(Recipient) may apply to MDEC for an extension of the following date, by serving a written request on MDEC not less than One (1) month or such other period as agreed by MDEC, prior to the expiry of such date, together with its justification and supporting documents for such request, and MDEC may but is not obliged to grant an extension, provided always that such extension, if granted, shall not exceed the following duration maximum period of extension:

• Project Commencement Date – up to 1 month
• Project Completion Date – up to a third (1/3) of the original Project Duration (subject to recommendation of the Project Assessor where applicable);

All the applicants need to pitch their proposal on how to automate their business processes in resolving their business pain points.

Approval of grant will be based on the decision made during the pitching session.

No as the SAG eligibility criteria is incorporated under Malaysia laws.

SAG is allowed once for companies with the same shareholding

MDEC is the Programme manager for Smart Automation Grant.

CLIC will acknowledge receipt of the complete submission in term of application form and supporting documents.

MDEC verifies application based on the eligibility criteria and will notify the applicants via email to participate in the pitching session.